A month has gone by since the last earnings report for FleetCor Technologies . Shares have added about 0.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is FleetCor Technologies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
FLEETCOR Surpasses Q2 Earnings & Revenues Estimates
FLEETCOR Technologies reported solid second-quarter 2021 results as both earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $3.15 per share outpaced the consensus estimate by 7.9% and increased 38.2% year over year. The reported figure lies above the guidance of $2.80-$3.
Revenues of $667.4 million beat the consensus mark by 5% and increased 27.1% year over year on a reported basis and 23% on a pro-forma and macro-adjusted basis.
Quarterly results were backed by the macroeconomic environment of higher fuel prices and favorable foreign exchange rates. The company is witnessing a solid credit performance.
Revenues in Detail
Segment wise, revenues from North America came in at $443.43 million, up 24.1% year over year. Internationally, revenues of $138.29 million increased 49.4% year over year. Revenues from Brazil grew 14% to $85.67 million.
Product-category wise, fuel revenues of $295.1 million went up 18% year over year on a reported basis and 19% on a pro-forma and macro-adjusted basis.
Corporate Payments revenues of $140.4 million increased 52% year over year on a reported basis and 32% on a pro-forma and macro-adjusted basis.
Tolls revenues of $71.3 million improved 10% year over year on a reported basis and 9% on a pro-forma and macro-adjusted basis.
Lodging revenues of $62.2 million grew 53% year over year on a reported basis and 39% on a pro-forma and macro-adjusted basis.
Gift revenues of $32.3 million grew 22% year over year on a reported as well as on a pro-forma and macro-adjusted basis.
Other revenues of $66 million increased 30% year over year on a reported and 25% on a pro-forma and macro-adjusted basis.
Operating Results
Operating income increased 39.8% from the prior-year quarter’s level to $297.61 million. Operating income margin rose to 44.6% from 40.5% in the prior-year quarter.
Balance Sheet & Cash Flow
FLEETCOR exited second-quarter 2021 with cash, cash equivalents and restricted cash of $2.06 billion compared with $1.43 billion at the end of the prior quarter.
The company generated $278.59 million of net cash from operating activities. Capital expenditures totaled $26.2 million.
In the reported quarter, FLEETCOR repurchased shares worth $254.54 million. The company’s board of directors increased its share repurchase program by $1 billion on Jul 27, 2021. Currently, it has $1.6 billion of repurchase capacity.
Third-Quarter 2021 Outlook
For the third quarter of 2021, FLEETCOR expects adjusted earnings between $3.35 and $3.5 per share.
2021 Guidance
For 2021, FLEETCOR raised its guidance. Adjusted earnings per share are now anticipated between $12.80 and $13 compared with the prior guidance of $12.14-$12.70.
Revenues are now anticipated in the range of $2.74-$2.79 billion compared with the prior guidance of $2.6-$2.7 billion.
Interest expenses are now expected between $120 million and $125 million compared with the prior guidance of $110-$120 million. Adjusted tax rate is now anticipated between 21.5% and 22.5% compared with the prior guidance of 19.5-21.5%.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
Currently, FleetCor Technologies has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise FleetCor Technologies has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is FleetCor Technologies (FLT) Up 0.7% Since Last Earnings Report?
A month has gone by since the last earnings report for FleetCor Technologies . Shares have added about 0.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is FleetCor Technologies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
FLEETCOR Surpasses Q2 Earnings & Revenues Estimates
FLEETCOR Technologies reported solid second-quarter 2021 results as both earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $3.15 per share outpaced the consensus estimate by 7.9% and increased 38.2% year over year. The reported figure lies above the guidance of $2.80-$3.
Revenues of $667.4 million beat the consensus mark by 5% and increased 27.1% year over year on a reported basis and 23% on a pro-forma and macro-adjusted basis.
Quarterly results were backed by the macroeconomic environment of higher fuel prices and favorable foreign exchange rates. The company is witnessing a solid credit performance.
Revenues in Detail
Segment wise, revenues from North America came in at $443.43 million, up 24.1% year over year. Internationally, revenues of $138.29 million increased 49.4% year over year. Revenues from Brazil grew 14% to $85.67 million.
Product-category wise, fuel revenues of $295.1 million went up 18% year over year on a reported basis and 19% on a pro-forma and macro-adjusted basis.
Corporate Payments revenues of $140.4 million increased 52% year over year on a reported basis and 32% on a pro-forma and macro-adjusted basis.
Tolls revenues of $71.3 million improved 10% year over year on a reported basis and 9% on a pro-forma and macro-adjusted basis.
Lodging revenues of $62.2 million grew 53% year over year on a reported basis and 39% on a pro-forma and macro-adjusted basis.
Gift revenues of $32.3 million grew 22% year over year on a reported as well as on a pro-forma and macro-adjusted basis.
Other revenues of $66 million increased 30% year over year on a reported and 25% on a pro-forma and macro-adjusted basis.
Operating Results
Operating income increased 39.8% from the prior-year quarter’s level to $297.61 million. Operating income margin rose to 44.6% from 40.5% in the prior-year quarter.
Balance Sheet & Cash Flow
FLEETCOR exited second-quarter 2021 with cash, cash equivalents and restricted cash of $2.06 billion compared with $1.43 billion at the end of the prior quarter.
The company generated $278.59 million of net cash from operating activities. Capital expenditures totaled $26.2 million.
In the reported quarter, FLEETCOR repurchased shares worth $254.54 million. The company’s board of directors increased its share repurchase program by $1 billion on Jul 27, 2021. Currently, it has $1.6 billion of repurchase capacity.
Third-Quarter 2021 Outlook
For the third quarter of 2021, FLEETCOR expects adjusted earnings between $3.35 and $3.5 per share.
2021 Guidance
For 2021, FLEETCOR raised its guidance. Adjusted earnings per share are now anticipated between $12.80 and $13 compared with the prior guidance of $12.14-$12.70.
Revenues are now anticipated in the range of $2.74-$2.79 billion compared with the prior guidance of $2.6-$2.7 billion.
Interest expenses are now expected between $120 million and $125 million compared with the prior guidance of $110-$120 million. Adjusted tax rate is now anticipated between 21.5% and 22.5% compared with the prior guidance of 19.5-21.5%.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
Currently, FleetCor Technologies has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise FleetCor Technologies has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.